Bob Lutz ‘Surprised And Shocked’ If 2017 Chevy Bolt Is A Profitable Venture

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Chevrolet announced the 2017 Bolt EV will make its official public debut in production form at the 2016 Consumer Electronics Show in Las Vegas next month. While we quickly approach the reveal, Bob Lutz, former General Motors executive and “father” of the Chevrolet Volt, recently remarked on the profitability of such a car.

“I no longer have access to General Motors figures, but I would be surprised and shocked if the 200-mile electric Bolt is going to make money. You look at the cost per kilowatt hour of batteries and the number of kilowatt hours they have got in there and then you look at the selling price. It’s just not going to work.”

This comes despite GM product chief, Mark Reuss, stating he believes the 2017 Bolt EV may cost less than $30,000 after federal tax credits. It also follows news of GM only paying $145 per kWh for battery cells from its close-knit companion, LG.

The discussion branched out from an over-arching topic of vehicle programs eating away budgets to appease and satisfy regulators, where other execs commented, saying certain mandates eat away at research and development budgets.

Lutz also blamed projects like the Chevrolet Volt and Chevrolet Bolt for surges in prices on already profitable vehicles, claiming it as an attempt to recoup costs on projects much like electric vehicles and fuel cells.

Lutz called for major collaboration among major automakers to keep the business as profitable as it can be.

“Just do one fuel cell vehicle and have about six companies each participate in the architecture so that at least they might attain a volume of maybe 100,000, so that everybody can have their 5,000 or 6,000, which they’re going to need to comply with California.”

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6 Comments

I know three other people other then myself, that cannot wait for a 200+ mile range EV, right at this price point. Smooth, efficient, quiet, with immediate torque, while requiring almost no maintenance with more then enough range to meet most basic needs.
The Bolt seems to be right sized around small CUV proportions, that has just begun to take market share, fits my requirements to a T!

If I had one of these I would drive a lot more miles than I currently do. Drive up to the lake just on a whim to spend the day and drive back all on one charge and spend a quarter to recharge it, it would be great.

Well at this point no EV cars are making profits alone on what they offer.

The point of these cars is to continue to develop the technology and make it cheaper and better over the long run.

If you do not build these cars they will never get cheaper or better. Kind of the Chicken or the egg when it comes to what comes first better cars or better technology.

I love Bob but I suspect he is speaking out as he has been left out of the EV market where he has tried to re enter. I know he would like to work with GM on his own project but it appears the are not interested. He has had his pick up truck prototype and other ideas but none have gotten off the ground.

That’s $37,500 before the $7500 tax credit, so let’s assume a $40K MSRP after a few options — there should be room for some profitability. Even if not, with trucks and SUVS flying out the doors as fast as you can build them — and stringent CAFE requirements coming down the pike way too quickly — this allows GM to continue selling a very profitable mix of vehicles.

Even if GM doesn’t turn much of a profit on the Bolt, the value is in keeping abreast with the latest EV technology and maintaining a strong relationship with LG and other key suppliers. Bob’s mentality is “old school” and his approach would be what you would expect from the Old GM, which was to do the bare minimum to satisfy compliance requirements. I think there are some key people in place now at GM that see the reality of EVs being the future of automotive transportation and the need to be the #1 or #2 player in that segment.